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The 2020 NAMM Global Report Provides Members with Industry Data to Guide Decision Making

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2020 The 2020 NAMM Global Report Provides Members with Industry Data to Guide Decision Making This copy belongs to Markus Theinert A MESSAGE FROM THE CHAIR AND PRESIDENT/CEO The current economic and health situation reveals just how interconnected we all are. From trade to travel, our world has been turned upside down, but even as we grapple with change, one thing is certain: We are in this together. Regardless of political rhetoric, global supply chains and digital integration are here to stay. Our industry requires global growth to maintain our bottom lines, and data-driven decision-making will define the next century. While growth is never a straight line and there will certainly be bumps in the road, the trends and forces at play provide hope for a brighter, stronger future—one in which membership can power both a feeling of collectivity and the means to succeed. We believe that music unites us and brings out the best in humanity. In pursuit of this noble goal, NAMM is committed to providing tools to support our members all around the world. Whether it’s by offering business-building educational resources or connecting buyers and sellers, or through data analysis such as this report, we seek to empower you to make broad, economic decisions, while growing your network and skills. For this reason, we bring you the 2020 NAMM Global Report, capturing a snapshot of 28 markets. With 132 countries and regions attending The NAMM Show and international firms composing 32 percent of our total membership base, we recognize and value the need for a global industry perspective. On behalf of the NAMM Board of Directors and staff, we appreciate your continued support and membership. NAMM remains committed to your success and to our industry. We sincerely hope you find the following information useful to your business. Sincerely, Chris Martin, NAMM Chair Joe Lamond, NAMM President and CEO 2 This copy belongs to Markus Theinert CONTENTS Message from the Chair and President/CEO 2 Methodology/Understanding the U.S. Data 4 U.S. Snapshot 5 U.S. Industry Revenue at a Glance 7 Music Industry Analysis 9 U.S. RETAIL SALES Fretted Products and Effects Market 10 Piano and Organ Market 14 School Music Market 17 Pro Audio Market 19 Percussion Market 22 DJ Market 25 Recording and Computer Music Market 27 Electronic Music Market 31 Print Music Market 33 MANAGING EDITORS Portable Keyboard Market 34 Causby Challacombe Karaoke Market 35 Erin Block General Accessory Market 36 INTERNATIONAL AFFAIRS U.S. INDUSTRY SUMMARY & Betty Heywood IMPORTS AND EXPORTS Industry Summary 38 SR. RESEARCH ANALYST Import and Export Data 45 Erin Block INTERNATIONAL DATA LAYOUT/DESIGN Understanding the International Data 53 Matt Stenberg Argentina 54 Megan Nelson Australia 63 Austria 73 COPY EDITOR Belgium 81 Caitlin Healy Brazil 87 Canada 96 China 114 Czech Republic 126 Finland 133 France 139 Germany 147 Hungary 160 India 172 Italy 180 Japan 191 Mexico 207 Netherlands 216 Norway 223 Philippines 229 Russia 239 South Korea 248 Spain 254 Sweden 265 Switzerland 272 Taiwan Market 278 Thailand 286 United Kingdom 294 NAMM EXECUTIVE COMMITTEE 304 & BOARD OF DIRECTORS ACKNOWLEDGMENTS 305 This copy belongs to Markus Theinert METHODOLOGY The NAMM Global Report is a collection of information gathered from many sources, agencies and associations around the world. NAMM does not verify any of the information and cannot and does not guarantee the accuracy of the data. The statistics NAMM receives are summaries; NAMM personnel do not see or manipulate any individual company information. Sources for each piece of data are listed at the beginning of each section and can be summarized as follows: U.S. domestic sales information and commentary is provided by The Music Trades magazine and import and export numbers are collected by the U.S. Census Bureau. Sales information and commentaries in the International section are provided by associations in each country. International economic, demographic and trade data are gathered from the CIA World Factbook, and the International music industry numbers are provided by The Music Trades magazine. UNDERSTANDING THE U.S. DATA How do you get sales data in an industry where most of the business is done by privately held companies and there are few reporting sources? The answer is you spend a lot of time digging. The data in these pages comes from a variety of sources—import and export data as compiled by the World Trade Organization, data gleaned from regular Music Trades retail surveys, filings from the industry’s 15 publicly held enterprises, association data, and informed estimates. The result is a “snapshot” of the volume of music products that move through the specialized channel of approximately 5,000 MI dealers. In the case of portable keyboards and karaoke products, however, mass merchant volumes are also included. In addition, sales of software products, specifically in the recording segment, include an estimate of the value of direct-to-consumer downloads that bypass the retail channel altogether. The numbers presented in these columns represent the estimated retail value of wholesale shipments. Retail value is determined by estimating an average retail mark-up and then applying it to the estimated wholesale value. Data in these pages are for the United States only, reflecting wholesale shipments to U.S.-based retailers. Using an average industry margin that varies from category to category, we estimate a retail sales value. This methodology, although not perfect, yields a consistent picture and allows for reasonable year-to- year comparisons. 4 This copy belongs to Markus Theinert Music USA United States Snapshot UNITED STATES SNAPSHOT Demographics Population in millions 332.6 Demographics Age Male Female 0–14 31.37 30.03 0–14 18.5% 15–64 107.52 107.66 65 & Over 25.01 31.04 15–64 65+ 64.6% Median Age 38.5 16.9% Population Growth 0.72% Economy GDP (PPP) $21.44 trillion Data Source: Demographics, Economy and Trade from CIA World Factbook, Music Industry from The Music Trades. GDP (PPP): Gross Domestic Product based on purchasing-power-parity (PPP) valuation of country GDP in U.S. dollars. GDP Per Capita $65,100 GDP-Real Growth Rate 2.10% Unemployment Rate 3.50% Inflation -0.09% United States GDP (PPP) 25 (U.S. $ in trillions) Economy 20 15 GDP-Industry 18.0% 10 GDP-Service 70.0% 5 GDP-Manufacturing 0 11.0% '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 GDP-Agriculture 1.0% Unemployment Rate Ination 10 (Percent) 4 (Annual Percent Rate) 9 8 3 7 6 2 5 4 1 3 2 0 1 0 -1 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 5 This copy belongs to Markus Theinert Music USA United States Snapshot Trade Total Export $1.7 trillion Export as % of GDP 7.70% Total Import $2.5 trillion Import as % of GDP 11.66% Export Partners (2019) Import Partners (2019) 18 20 15 16 12 12 rcentage rcentage 9 Pe Pe 8 6 Annual Annual 3 4 0 0 Canada Mexico China Japan China Mexico Canada Japan Germany Music Industry Music Market $8.0 billion Music Sales Per Capita Sales Per Capita $24.08 (U.S. $) 30 Global Share 45.80% 25 20 15 10 5 0 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 United States Music Market Share of Global Music Market (U.S. $ in billions) (Percent) 9 60 8 50 7 6 40 5 30 4 3 20 2 10 1 0 0 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 6 This copy belongs to Markus Theinert Music USA U.S. INDUSTRY REVENUE AT A GLANCE Product Sales Totals (Retail 2018–2019) 2019 2018 $1,891.69 Fretted Products $1,736.10 $853.43 Pro Audio $845.18 $680.50 General Accessories $642.53 $661.68 Wind Instruments $631.55 $627.00 Microphones $612.20 $468.00 Printed Music $475.00 $374.95 Percussion $372.72 $365.09 Computer & Recording Products $348.00 $307.05 Acoustic Pianos $278.24 $264.27 DJ Gear $275.35 $182.70 Digital Pianos $190.90 $181.68 Eects $169.20 $164.00 Cables $161.00 $159.30 Keyboard Synthesizers $150.93 $155.22 Multi-Track Recorders $148.60 $153.93 Instrument Ampliers $151.58 $127.73 Portable Keyboards $156.26 $125.56 Stringed Instruments $132.30 $113.39 Other Electronic Products $113.93 $100.75 Electronic Player Pianos $84.86 $25.90 Institutional Organs $25.92 $17.00 Karaoke Machines $17.63 $10.33 Rhythm Machines $10.43 0200 400600 80010001200140016001800 (in millions of dollars) 7 This copy belongs to Markus Theinert Music USA U.S. INDUSTRY REVENUE AT A GLANCE 2019 Industry Sales Gains and Declines Electronic Player Pianos 18.72% Acoustic Pianos 10.35% Fretted Products 8.96% Eects 7.38% General Accessories 5.91% Keyboard Synthesizers 5.55% Computer & Recording Products 4.91% Wind Instruments 4.77% Multi-Track Recorders 4.45% Microphones 2.42% Cables 1.86% Instrument Ampliers 1.55% Pro Audio 0.98% Percussion 0.60% Institutional Organs -0.08% Other Electronic Products -0.47% Rhythm Machines -1.01% Printed Music -1.47% Karaoke Machines -3.57% DJ Gear -4.02% Digital Pianos -4.30% Stringed Instruments -5.09% Portable Keyboards -18.25% -20 -15 -10 -5 0510 15 20 8 This copy belongs to Markus Theinert Music USA INTRODUCTION 2019 Music Industry Analysis Industry Shakes off Trade War Concerns Tariffs and trade policy are fluid and shift from one administration to the next.
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